EURUSD

The Euro is trading under fresh nearly six-week high at 1.0718, posted after yesterday’s strong acceleration higher.
Close above important 1.0705 barrier (Fibo 38.2% of 1.1298/1.0339 descend) generated bullish signal for final push towards daily cloud (cloud base is currently at 1.0790).
Strong bullish momentum on daily chart favors scenario, as daily MA’s in bullish setup underpin the action.
Corrective easing is expected to precede fresh attempts higher, with broken daily 55SMA (currently at 1.0624) to ideally contain dips and guard pivotal supports at 1.0590/80 zone (former lows, reinforced by daily Tenkan-sen, now in sideways mode).
Release of US inflation data is eyed for signals and stronger reading may undermine Euro’s bulls.
Firm break below 1.0580 is needed to signal reversal.

Res: 1.0705; 1.0718; 1.0746; 1.0790
Sup: 1.0664; 1.0625; 1.0611; 1.0590

GBPUSD

Cable eases from fresh recovery high at 1.2415, posted on yesterday’s sharp acceleration that marks the biggest one-day gains since 1998.

Rally was capped by 55SMA/upper Bollinger band, just short of next significant barrier at 1.2430 (2017 high).

Profit-taking action drags the price lower, with first significant support at 1.2250 (Fibo 38.2% of yesterday’s acceleration) and pivot at 1.2200 (daily Tenkan-sen line).

Loss of the latter would signal that yesterday’s strong rally on short-covering, fuelled by speech of UK PM May on Brexit, may be running out of steam.

Otherwise, limited dips are expected to keep focus shifted higher, as further bullish extension cannot be ruled out.

The pair needs to regain 1.2430 pivot to signal fresh upside action, with extension above 1.2472 (Fibo 61.8% of 1.2772/1.1986 descend), needed to confirm bullish continuation and expose daily cloud top (1.2586).

Res: 1.2351; 1.2415; 1.2430; 1.2472
Sup: 1.2315; 1.2215; 1.2200; 1.2150

USD/JPY

Extension of bear-leg from 118.59 (03 Jan high) found temporary footstep at 112.55, just ahead of strong supports at 112.20 (daily cloud top); 112.12 (weekly cloud top) and 111.97 (Fibo 38.2% of 101.17/118.65 rally).
Recovery action on oversold near-term studies was so far limited by broken 55SMA and extended upticks to be likely capped under yesterday’s high at 114.26.
Bearishly aligned daily MA’s suggest that bear-phase off 118.65/59 double top could extend further. Violation of daily / weekly cloud tops would trigger fresh weakness.
Alternatively, recovery extension above yesterday’s high and regain of daily Tenkan-sen (115.03) would sideline persisting downside risk.

Res: 113.42; 113.60; 114.26; 114.71
Sup: 112.55; 112.12; 111.97; 111.34

AUDUSD

Yesterday’s rally that eventually broke and closed above Strong barrier at 0.7540 (daily cloud top / Fibo 61.8% of 0.7776/0.7158 descend), signals bullish continuation of the upleg from 0.7160 base towards next targets at 0.7600 (round-figure) and 0.7630 (Fibo 76.4%). Consolidation under fresh high at 0.7566 was so far narrow and contained by daily cloud top, which guards plethora of strong supports (former strong barriers) that should contain extended downticks. Daily cloud base and converged 100/200SMA’s offer next support at 0.7495, ahead of higher base at 0.7456. Only close below these supports would sideline immediate bulls and signal correction that would expose next strong support at 0.7412 (rising daily Tenkan-sen).

Res: 0.7566; 0.7579; 0.7600; 0.7630

Sup: 0.7540; 0.7495; 0.7456; 0.7426

 , Daily Market Outlook